Increasing regional minimum wage, increasing income
Ms. Mui Thi Tac, born in 1987, from Moc Chau district (Son La) has been in Hung Yen for 2 years. Currently, Ms. Tac is working as a worker at Uniben Joint Stock Company (Lac Dao commune, Van Lam district, Hung Yen).
According to Ms. Tac, before July 1, 2024, her total income was about 9.1 million VND. From July 1, 2024, the minimum wage in Van Lam district will increase to 4,410,000 VND/month, with her total income of nearly 10 million VND/month. "A few hundred thousand dong per month, the family has more money to spend and live on," said Ms. Tac.
Similarly, male worker Ha Van Tuyen, born in 1995, from Ba Thuoc district (Thanh Hoa) came to Hung Yen in February 2024, worked through several companies, currently a casting workshop worker, Canon Vietnam Co., Ltd. (Pho Noi Industrial Park, Hung Yen). According to Mr. Tuyen, after July 1, 2024, his income will increase by more than 400,000 VND/month. "I have more money to send back to my hometown for my parents to take care of my son who is in high school," the male worker said.
According to Decree 74, employers with units and branches operating in areas with different minimum wages, in which area the unit or branch operates, shall apply the minimum wage prescribed for that area.
In Hanoi, Ms. Bui Thu Huong is currently working as a worker at a garment company in Gia Lam district, with an income based on the minimum wage of VND 4,960,000/month in region 1. After 6 years of working as a worker, Ms. Huong said that her total income if she works regularly and overtime can be more than 13 million VND/month.
Also in Hanoi, Mr. Tran Van Hieu, a worker at a mechanical company in Phu Xuyen district, has an income based on the minimum wage of VND 4,410,000/month, with a total income of more than VND 12 million/month.
According to Decree 74/2024/ND-CP, from July 1, 2024, the regional minimum wage will increase by 6% as follows:
- Region 1: 4,960,000 VND/month (minimum 23,800 VND/hour)
- Region 2: VND 4,410,000/month (minimum time VND 21,200/hour)
- Region 3: VND 3,860,000/month (minimum VND 18,600/hour)
- Region 4: VND 3,450,000/month (minimum VND 16,600/hour).
Zoning the regional minimum wage
Regarding the adjustment of regional minimum wages, the Ministry of Home Affairs said it will focus on preparing content on adjusting regional minimum wages, including the division of minimum wages in accordance with the arrangement of administrative units and the merger of provinces and cities.
Thus, when merging provinces and removing district levels, specialized agencies will have to recalculate the appropriate minimum wage division.
In the immediate future, localities and enterprises will still comply with the provisions of Decree 74. Wherever it is in a district, town or city will still be applied until the Government adjusts.
Supporting the increase in regional minimum wages, former Deputy Minister of Labor, War Invalids and Social Affairs Pham Minh Huan said that increasing regional minimum wages is important, but the most important thing is to increase wages in enterprises, which must be linked to labor productivity and production and business efficiency.
"It is necessary to consider the aspects of the market, businesses, and State views to consider increasing the regional minimum wage and if so, at what level" - Mr. Pham Minh Huan emphasized.
